Domestic pharma major Ranbaxy?s shares on Tuesday plummeted over 11 per cent on the bourses on Tuesday in the wake of reports that Canadian health regulator has issued a notice to the company expressing concern over its non-compliance of good manufacturing practice.
The company?s shares closed the day at Rs 308.85, down 11.05 per cent from Monday?s closing on the Bombay Stock Exchange. The scrip had opened at Rs 344.90, which was also its day?s high, and touched an intra-day low of Rs 306.55.
Over 21.66 lakh shares got traded.
According to media reports the Canadian drug regulator, Health Canada, has issued a notice to the Ranbaxy asking it for an action plan and a response to an earlier warning letter issued to the Gurgaon-based firm by the USFDA.
Analysts believe that the fall in the share price of the company was more of a sentiment driven one as the scrip is fundamentally strong.
?The company is witnessing a lot of bad news and the stocks is already beaten down,? SMC Global Vice President Rajesh Jain said.
Similarly, on the National stock Exchange the scrip closed 11.04 per cent down at Rs 309.10. The scrip had touched the day?s low of Rs 306.30 and over 67.14 lakh shares changed hands on the bourse.
However, analysts are hopeful that the company would regain the momentum even with a slightest positive news.
?When the market is falling a slight negative news leads to a fall in the share price. It will witness a counter-rally once the situation turns positive for the company.
Last week the US FDA blocked imports of generic drugs produced by the company in two of its plants due to ?serious manufacturing deficiences?.